The Clap
Qatar’s last-minute ban on the sale of beer in and around World Cup stadiums will potentially hurt Anheuser-Busch InBev (NYSE: BUD), limiting the sales of Budweiser alcoholic products.
What
Budweiser is one of the World Cup’s major sponsors. This decision is expected to impact the company’s sales, after being the exclusive alcoholic beer provider for the World Cup since 1986.
The World Cup typically boosts beer consumption globally throughout the event.
So What
The ban will cause a significant logistics expense, as Budweiser now has a large inventory of distributed products that it cannot sell.
Other major sponsors have shown concern regarding their contracts following the u-turn on alcoholic beverage sales.
Now What
Budweiser still aims to capitalize on its exclusive rights to the World Cup by showcasing and selling its range of non-alcoholic beverages, such as Budweiser Zero.
